Palladium soars on strike news

Palladium, the emission-scrubbing cousin of platinum, has soared to a 39-month high as the South African government failed to end a 19-week strike.

The metal hit a high of $855.40 an ounce early Tuesday, according to Bloomberg, a 35.4% gain since its low on June 26, 2013. Impala Platinum, the world’s second-largest platinum producer, said on Tuesday it “has exhausted all its financial means” in its wage offer, according to Reuters.

Miners are demanding a basic monthly wage of about $1,161 by 2017, an increase of about 23% a year.

Palladium’s main use is in catalytic converters. Russia is the chief palladium producer, followed by South Africa. Prices have been squeezed by rising car sales in the U.S., political uncertainty in Russia, and the strike in South Africa.

Rising palladium prices have pushed up platinum prices as well. Platinum, which is harder and more prized for jewelry than palladium, rose to $27.19 to $1,480.39 an ounce Tuesday, according to Bloomberg. Gold rose $7.56 to $1,259.90, and silver gained 11 cents to $19.19.

Mutual fund investors can invest in palladium through an exchange-traded fund, Physical Palladium Shares (ticker: PALL). The fund owns 623,204 troy ounces of the metal. Those who want the metal itself can buy palladium coins — Canada has minted a palladium Maple Leaf, with weight and fineness guaranteed by the Canadian government.